Page 10 - AfrElec Week 46

AfrElec ESKOM AfrElec

of ZAR31bn as at end July 2020 continues to Cutting electricity off has serious implica-
threaten Eskom’s sustainability. Municipalities tions, because it would mean essential services
have a responsibility to fulfil their financial obli- like hospitals and fire stations would also be
gations for the bulk supply of electricity.” affected.
Gordhan told Parliament that Eskom had But, Yelland said that Eskom would not
suggested a number of ways to collect the out- completely cut off electricity, probably only cut-
standing debts. These included offering payment ting off electricity during peak hours, “it’s what
plans such as increasing the payment days from they euphemistically call load reduction,” said
15 to 30 days for all non-metropolitan munici- Yelland.
palities, reducing the interest rate on arrears. “This will put pressure on municipalities,
“Eskom is getting tough on credit control, because paying customers will be calling them
they’ve always been laid back by allowing this to and threatening legal action. But Eskom’s atti-
happen for the past ten years, which is wreaking tude is that they have a contract with the munic-
havoc on Eskom,” Chris Yelland, an energy ana- ipality and if they don’t adhere to the contract
lyst, told the Daily Maverick. then Eskom has every right to disconnect elec-
In the past financial year, Eskom had a net loss tricity,” said Yelland.™
of ZAR20.5bn.

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Uganda tops African sector and attract private sector investment,” WIND
said Dr. Kevin Kariuki, Vice President, Power,
countries with well- Energy, Climate and Green Growth, at the IRENA, GWEC enhance
African Development Bank.
developed electricity launched during the Digital Energy Festival cooperation to scale up
The third edition of the ERI report was
regulatory frameworks of the Africa Energy Forum, on 5 November renewables globally
2020. The event brought together more
Uganda has for the third time in a row than 70 stakeholders in the energy sector, The International Renewable Energy Agency
emerged as the top performer in this year’s regulators, international organizations, and (IRENA) and the Global Wind Energy
Electricity Regulatory Index Report published development finance institutions like Africa50 Council (GWEC) have signed a cooperation
by the African Development Bank. and the World Bank. agreement in order to join efforts aimed at
The East African country, along with Namibia, Wale Shonibare, Director for Energy increasing the adoption and deployment of
Tanzania, Zambia and Kenya, the other top Financial Solutions, Policy and Regulations, wind and renewable energy worldwide.
performers, have regulators with the authority at the African Development Bank, said The agreement was signed by IRENA
to exert the necessary oversight on the sector. COVID-19 related restrictions had increased Director-General Francesco La Camera and
However, the overall electricity regulatory residential electricity demand and decreased GWEC CEO Ben Backwell on the occasion of
frameworks of African countries is poorly industrial/commercial demand. This had the Race to Zero Dialogues, a programme to
developed, and most countries experience resulted in shortfalls in the projected revenues accelerate progress by governments, industry
major regulatory weaknesses. of utilities. and other key stakeholders to meet the Paris
The ERI, a flagship report of the African “To address these challenges, regulators Agreement, convened by the High-Level
Development Bank, is a composite index will be required to play an even more critical Champions for Global Climate Action.
which measures the level of development and central role post-Covid, to ensure that the As shown in IRENA’s Global Renewables
of electricity sector regulatory frameworks sector recovers with minimal and controlled Outlook report, a Paris-compliant future
in African countries against international impact on consumers and utilities,” Shonibare by 2050 requires transformative changes
standards and best practice. said. to policy, behaviour and international
“The African Development Bank has Koffi Klousseh, Director of Project cooperation. Renewable technologies such
been at the forefront of efforts to mainstream Development at Africa50, praised the ERI as onshore and offshore wind, as well as
electricity sector regulation issues in as a great tool for assessing the readiness energy efficiency measures, can deliver more
Africa within the broader sector discourse, of the electricity sector for private sector than 90 per cent of the emission reductions
recognizing the importance of establishing investments. needed, while providing net employment and
robust legal and regulatory frameworks to AFRICAN DEVELOPMENT BANK economic gains in the process.
support the financial sustainability of the Both IRENA and GWEC recognise that

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